Steady profits for Euro Quality Lambs despite rising costs

Despite a challenging economic backdrop with rising energy costs, exporter Euro Quality Lambs was able to maintain a healthy profit margin in 2022.

The company made a pre-tax profit of £2.136m in the year to 30 June 2022, just £6,000 below the previous year’s levels.

See also: Huge spike in retail lamb sales at supermarkets

Turnover was up by 11% on the year to total £68.5m – however, cost of sales, distribution costs, and administrative expenses were also higher.

Euro Quality Lambs is continuing to invest in its research and development and improvements to its manufacturing facilities, according to its strategic report.

The key risks to the business are listed as volatile lamb prices, high energy costs, competition from major industry players, high levels of regulation and labour availability.

Looking forward, the company expects the majority of its demand to continue into mainland Europe and believes the industry is expected to remain highly competitive in the future.

Chairman Mohammad Khalid said: “The directors are closely monitoring the local markets and believe that there may be further consolidation in the industry.

“The company is ideally placed with an excellent reputation and a strong financial base navigating through current economic challenges and will continue to seek every opportunity to increase profitable turnover.”